Unilever’s Profit Drops by 72.95% As Operating Cost Wipes Out N27.10bn From Revenue

• Unilever one of Nigeria's biggest manufacturing companies has announced a significant drop in its profit
• This is coming after revealing plans to manufacture some of its popular products, including Omo and Lux
• Unilever has actively been in Nigeria as a business entity for over 100 years and has satisfied different generations with its products

Unilever Nigeria Pl has announced that it recorded a significant decline in profit after tax to N169.9 million in the second quarter of 2023.

This represents a significant 72.95% drop when compared to the N628.27 million it reported in the same period of 2022.

The company stated the massive drop in its Q2 unaudited results submitted to the Nigeria exchange on Monday, July 24.

Unilever's poor profit comes despite recording a 27.31%. increase in revenue for the quarter to N29.60 billion up from N23.25 billion recorded in the same period in 2022.

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But most of the revenue was whipped out by the rising cost of goods and services and also an operating loss of N3.2 billion in the quarter under review

Breakdown of Unilever revenue in Q2

Unilever revealed that during the three months period of the quarter(April to June) majority of its revenue was driven by a rise in the company’s main business segments (food products and home & personal care).

Food Products delivered a revenue of N14.72 billion in the quarter compared to N10.43 billion same period last year.

While revenue from Home & Personal Care was N14.88 billion compared to N12.81 billion same period last year.

Other key numbers from Unilever result

• Gross profit declined to N2.49 billion from N7.03 billion reported last year.
• Profit for the period after tax payment is N91.47 million.

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Unilever ends manufacturing of OMO, LUX, other popular skin, home products

Meanwhile, you will recall that in a major shift in its business model, Unilever announced plans to stop manufacturing some of its popular products, including Omo and Lux

The company believes that the proposed change will drive its profitability and help it navigate weak naira challenge.

Other popular brand include Sunlight, which at different points in history, have gained iconic status among consumers.

Source: Legit.ng